WORKING WITH THE VA LUE C H A IN CANADIAN INTERNATIONAL GRAINS INSTITUTE ANNUAL REPORT 2016-2017 1 OUR VISION GLOBAL RECOGNITION OF CANADIAN GRAIN AND FIELD CROPS AS THE PREFERRED CHOICE FOR END-USE PRODUCT APPLICATION. OUR MISSION TO INCREASE UTILIZATION OPPORTUNITIES FOR CANADIAN GRAIN AND FIELD CROPS THROUGH SUPERIOR KNOWLEDGE, TECHNICAL EXPERTISE, INDUSTRY LEADERSHIP AND COLLABORATION, INNOVATIVE PROCESSING SOLUTIONS AND TARGETED TRAINING. Cover Photo: Indonesia Technical Exchange Program participants visit Pitura Seeds farm in Manitoba, July 2016. 2 ABOUT US Canadian International Grains Institute is a not-for-profit organization that was established in 1972 in Winnipeg, Manitoba, Canada. We work with the grain and field crop value chain throughout Canada and internationally to drive development and utilization of Canadian agricultural products. OUR PURPOSE • Promoting Canadian grain to global processors • Providing Canadian and international participants with training in Canadian grain and field crop production, marketing, distribution and processing • Providing Canadian industry participants with training to build knowledge of market characteristics and requirements • Identifying unique end-use for Canadian grain and field crops through applied research • Operating facilities used to provide practical, commercially oriented knowledge to support a competitive Canadian grain and field crop value chain STRATEGIC FOCUS Cigi's work with the value chain is focused on four strategic areas: • Market Support • Innovation • Collaboration • Communication OUR FUNDERS WESTERN CANADIAN FARMERS (15 cents/tonne of wheat) GOVERNMENT OF CANADA (Agriculture and Agri-Food Canada) INDUSTRY PARTNERS 3 MESSAGES FROM OUR CHAIR AND CEO MURDOCH MACKAY JOANNE BUTH Chair Chief Executive Officer (CEO) Cigi is a present-day example of the ancient Staying the course and preparing for change. For philosophy that the only thing constant in life is change. Cigi both were a reality in 2016-17. Since becoming board chair in 2012, the Board of Directors has worked to ensure that Cigi is well We sharpened our focus on market analysis, ensuring positioned to respond to the changing needs of the our program resources and technical expertise were industry and deliver value to its stakeholders. directed to regions where our efforts will provide the greatest return to the Canadian wheat value chain. This effort has seen an evolution in how Cigi is governed For each region a detailed plan identified technical and funded. During the past five years we’ve broadened support priorities and program opportunities. the cross section of industry representatives at the board Together these plans provide a glimpse into the depth table and benefitted greatly from their perspectives and of knowledge Cigi staff have about the processing expertise. A transitional check-off enabled farmers to and end-product requirements in key markets built support Cigi’s work with customers of Canadian wheat over decades of experience working with customers. during the change to an open market. We’ve challenged ourselves as board members and staff to better Multi-year research projects involving wheat and articulate the value Cigi delivers. pulses were ongoing and continued to uncover new knowledge that will contribute to the value chain’s Together we have laid the groundwork for an exciting understanding of how to optimize the processing and future for Cigi as evidenced by the frank and productive utilization of these crops. These projects draw upon discussions that have taken place during the past year Cigi’s unique ability to bring a customer focus to its with industry stakeholders. investigations. It’s a great time to be involved in the grain industry and it As we stayed the course and delivered on our market has been an honour to be a member of the board during support and research priorities, Cigi was also such a transformational time in Cigi’s history. engaged in discussions to chart its future. From these meetings with the provincial wheat commissions and grain exporters/handlers, I am confident that we are well on our way to ensuring Cigi remains a core asset to the industry. 4 OUR BOARD OF DIRECTORS (As at March 31, 2017) (L to R): Brent Watchorn, Director, Executive Vice President, Marketing, Richardson International Limited; Kevin Bender, Director, Farmer, Red Deer, Alberta; Murdoch MacKay, Chair; Henry Van Ankum, Vice Chair, Farmer, Alma, Ontario; Jim Wilson, Secretary, Farmer, Darlingford, Manitoba; Randy Johner, Director, Farmer, Estevan, Saskatchewan; JoAnne Buth, Chief Executive Officer (CEO), Canadian International Grains Institute; Lawrence Yakielashek, Director, General Manager, Farmlink Marketing Solutions. 5 MARKET SUPPORT PROMOTING HIGH QUALITY CANADIAN WHEAT TO INTERNATIONAL CUSTOMERS BUILDING CUSTOMER UNDERSTANDING CUSTOMER RELATIONSHIPS QUALITY NEEDS IN KEY EXPORT MARKETS IN MILLING, BAKING, PASTA AND NOODLE PROCESSING IMPROVING CUSTOMER GATHERING MARKET KNOWLEDGE INTELLIGENCE OF CANADIAN WHEAT TO HELP THE CANADIAN FUNCTIONALITY GRAIN INDUSTRY RESPOND TO CURRENT AND FUTURE CUSTOMER NEEDS TARGETED CUSTOMIZED INVESTIGATIVE NEW CROP HARVEST TECHNICAL SUPPORT TRAINING PROGRAMS MISSIONS ASSESSMENT AND SEMINARS 6 MA RKE T SUP P OR T OUR KEY MESSAGES IN 2016-17 CIGI MET WITH CUSTOMERS FROM 35 MARKETS. HERE ARE KEY MESSAGES CIGI STAFF DELIVERED ON BEHALF OF THE VALUE CHAIN. KRISTINA PIZZI, HEAD, ANALYTICAL SERVICES JUAN CARLOS ARRIOLA, HEAD, MILLING TECHNOLOGY “I want customers to know they can expect quality, “As head miller at Cigi it is important that I help customers consistency and cleanliness from Canadian wheat understand that Canadian wheat classes provide great because of our grading and varietal registration milling characteristics and excellent flour yield. I make sure systems. I talk about how our registration system is that they know our wheat delivers a complete quality and rigorous, that there are requirements that must be met consistency package supported by strict grading and variety not only for quality, but also agronomy and disease registration systems used in Canada.” resistance and that the industry keeps an eye on how varieties are performing.” ESEY ASSEFAW, HEAD, ASIAN PRODUCTS AND YVONNE SUPEENE, HEAD, BAKING TECHNOLOGY PASTA TECHNOLOGY “I like to tell customers that Canadian wheat classes such as “It is important for customers to know that Canada delivers CWRS and CWAD have unique attributes you won’t find in high-quality wheats and other field crops for export to meet competitors which allows for differentiation in end products. any processing demand. CWRS is a high-protein wheat that Most of our Asian customers blend CWRS wheat so instead produces high-quality end products and, while it is our of using 25%, increasing it even to 27% can make a better principal wheat for export, Canada also offers a number of product. I have the quality data to back it up and compare it different wheat classes for other applications. We look for to the qualities of competitor wheat.” customer feedback on crop quality and end-use applications, and relay this information back to the value chain.” MA RKE T SUP P OR T 7 CIGI PROGRAMS AND MISSIONS: PARTICIPATING MARKETS 2016-17 ALGERIA BAHRAIN BANGLADESH BRAZIL CANADA CHILE CHINA COLOMBIA CUBA DOMINICAN REPUBLIC ECUADOR GHANA INDONESIA IRAQ ITALY JAPAN UNITED ALGERIA KOREA (SOUTH) STATES OF KUWAIT AMERICA MALAYSIA MEXICO MOROCCO MOROCCO NIGERIA VENEZUELA OMAN MEXICO PERU PHILIPPINES COLOMBIA PUERTO RICO GHANA QATAR NIGERIA SRI LANKA ECUADOR SUDAN TAIWAN TUNISIA PERU UNITED ARAB EMIRATES UNITED KINGDOM UNITED STATES OF AMERICA VENEZUELA CHILE 8 MA RKE T SUP P OR T ITALY BANGLADESH JAPAN TUNISIA CHINA UNITED ARAB EMIRATES GHANA SRI LANKA NIGERIA INDONESIA Markets importing > 200,000 MTs Wheat (2015-16) Markets importing > 50,000 MTs Durum (2015-16) Source: Canadian Grain Commission MA RKE T SUP P OR T 9 PROGRAMS AND MISSIONS 2016-17 QUARTER 1 (APRIL 1 TO JUNE 30, 2016) Grain Industry Program (private company training program) Canada, USA Practical Use of Pulse Ingredients in Healthy Foods Workshop Canada, USA Indonesia Technical Exchange Program Indonesia Gulf Countries Technical Mission Bahrain, Kuwait, Oman, Qatar, United Arab Emirates Africa Technical Exchange Program Nigeria Iraq-Canada Grain Industry Program Iraq Canadian Grain Industry Overview Program Canada Saudi Grains Organization Millers Training Program Saudi Arabia Philippines Technical Exchange Program Philippines China Technical Exchange Program China QUARTER 2 (JULY 1 TO SEPTEMBER 30, 2016) Sri Lanka Technical Exchange Program Sri Lanka 49th International Grain Industry Program Bangladesh, Brazil, Canada, Chile, Colombia, Indonesia, Iraq, Italy, Japan, Malaysia, Nigeria, Oman, Peru, Philippines, South Korea, Taiwan Grain Grading Seminars for Growers-Saskatchewan (x2) Canada (with Sask Wheat and CGC) Africa Technical Mission Ghana, Sudan Making the Grade Workshop-Alberta (with AWC and CGC) Canada Indonesia Technical Exchange Program Indonesia North Africa Technical Exchange Program Algeria, Morocco, Tunisia Latin America Durum Wheat Program Chile, Colombia, Cuba, Ecuador, Peru, Venezuela Grain Industry Program (private company training program) Saudi Arabia Japan Durum Technical Exchange Program Japan Bangladesh and Sri Lanka Technical Mission Bangladesh, Sri Lanka Algeria Executive Program Algeria Europe Durum Investigative Mission Italy Latin America-Canada Grain Industry Program Chile, Colombia, Cuba, Dominican Republic, Ecuador, Mexico, Peru, Puerto